BOJ Member Saw Possible Near-Term Rate Hike: Summary

Tokyo, May 12 (Jiji Press)–A Bank of Japan policymaker at the latest monetary policy meeting said that it would be possible for the central bank to raise its policy interest rate as early as its next policy-setting meeting in June, according to a summary of opinions released Tuesday. “It is quite possible that the bank will raise the policy interest rate from the next monetary policy meeting onward, even if the future course of the situation in the Middle East remains unclear,” the summary quoted the policymaker as saying at the April 27-28 meeting. While saying that “there is no need to take hasty action at this point,” a Policy Board member said that “barring evident signs of an economic slowdown, the bank should raise the policy interest rate soon.” At the meeting, the BOJ’s Policy Board voted six to three to maintain its monetary policy unchanged. As the three dissenting board members proposed a rate increase, the view is spreading that the BOJ will move to raise rates at its next policy-setting meeting in June. At the April meeting, a board member said, “As it will take time for the Strait of Hormuz to become commercially navigable, the scenario of crude oil prices remaining elevated for a while should also be considered,” according to the summary. “Furthermore, in the case where upside risks to prices increase, it will be necessary to accelerate the pace of rate hikes without hesitation,” a board member also said. Meanwhile, a board member said that “if disruptions in supply chains become significant, it will be desirable for the bank to maintain accommodative financial conditions without raising the policy interest rate.” END [Copyright The Jiji Press, Ltd.]